Japanese stocks, which hit a new one-month high on Tuesday, appear to have got their mojo back, putting the 15,942 mark - a five-and-a-half year peak - within shooting distance.
The Nikkei's seemingly unstoppable winning streak came to an abrupt end in late May and it lost some 20 percent in the weeks up to June 17. Even after that it has seen heightened volatility, but positive economic data since last Thursday have prompted a near 9 percent rally.
"Of course we are back on an upward trajectory," said Nicholas Smith, Japan strategist at research house CLSA. "I think the five-and-a-half year high is definitely back in sight, there is still 20 to 30 percent room for growth in the market."
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Japanese equities soared over 80 percent since mid-November to late May, after Prime Minister Shinzo Abe first unveiled his radical economic plan to revive the country from 15 years of deflation.
The pullback raised some concern that the turnaround story has lost some of its luster, but analysts said the correction was nothing to do with a change in sentiment, but in part a result of fears over the tapering of the U.S. Federal Reserve's stimulus program.
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"The Japanese market was not over-valued, it was over-heated. The market was looking for an excuse for a pullback or a clean out and the 'taper tantrum' worked to trigger that," said Smith.